What is IDV?
The market value of the car is known as IDV for car insurance. IDV is an abbreviation for ‘Insured Declared Value’. It helps the bank or financial institute to find out the amount of premium to be charged to the person taking the insurance. It also helps in deciding the amount of claim during the claim payments. Before investing in the policy it’s necessary to take a look at the IDV along with the premium to be charged.
Insured Declared Value (IDV) In Car Insurance:
Insured Declared Value in car insurance is the actual market value of your vehicle in the market. It’s basically the amount you can reimburse at the time of the accident or a mishap to your insured vehicle. With the help of IDV, you can get the total sum of insurance you have invested in, in case anything happens to your vehicle.
Importance of IDV:
IDV is an important factor to be considered when buying car insurance. Your premium will be based on what is your IDV or Insured Declared Value. If your IDV is higher, your car insurance premium will also be high. This doesn’t mean that you show your IDV low as it will cause problems in case you meet a car accident and you want to claim insurance. When you go for insurance for your vehicle, IDV is checked and calculated to know the value of the car in the market. The amount paid by the policyholder for the insurance is directly proportional to IDV.
Use IDV Calculator to Calculate IDV for Your Car:
Using an IDV calculator is the most important step in knowing your IDV. IDV calculator helps in calculating IDV which then helps in determining the value of the car and knowing the right premium you need to pay to insure your vehicle. This is why the IDV calculator is important.
Following are the Various Factors Determining Your Car’s IDV:
It’s necessary to know the age of the car as depending on that your premium can be fixed. To calculate your IDV it’s important to know how old the car is. Older the car, the less the IDV and the less the age of the car the higher the IDV.
Manufacturer and the Model of the Car:
The manufacturer of the car and the model of the car also influence the IDV of the car insurance. Better the car model, the higher the premium you will have to pay.
Details of City Registration:
Registration details of the car are important when calculating the IDV. The city in which your car is based also impacts the IDV of the car. So, you need to consider the registration details of the car when calculating the IDV.
The moment you drive your car out of the showroom it starts to depreciate. Details of depreciation is an important factor when calculating the IDV of the car. The older the car the more the depreciation and vice versa.
The Bottom Line:
It’s important to know the IDV of the car as that determines the premium you will have to pay for the insurance of your car. To calculate IDV there are various factors. Your car insurance also depends on IDV calculation. For more check out Finserv MARKETS.